The permits cover about 740,000 acres, which are located in the area of Coronel Oviedo, Paraguay.
The property interests being acquired are contiguous on the northwest, west and east of the UEC’s 247,000-acre Coronel Oviedo project in central Paraguay.
The recent proposed acquisition increases the company’s total land package held in Paraguay to 987,000 acres.
The total purchase price for the property interests is the issuance of 100,000 restricted common shares in the capital of UEC and cash payment of $7,500.
UEC will also provide the three Paraguayan firms with a royalty interest in the amount of one and one-half percent of the gross proceeds received by the company in connection with any uranium which is produced and sold from any of the mineral interests in the permits.
The company has the exclusive right and option at any time to acquire one-half percent of the aggregate royalty interest for $500,000.
In addition, the Paraguayan firms have granted UEC a right of first refusal to acquire all or any portion of the remaining 1% royalty interest.
